France is in disarray. According to opinion polls, the popularity of French President – Nicolas Sarkozy, for many decades, didn’t not fell so low. Recently resigned two ministers and parliamentary passions abound with light hand media – series of scandals added to the charges a suspect in the corruption minister of abuse of office in obtaining funds for Sarkozy’s presidential campaign.
Dow Jones Industrial Average is at 10,452.46 points mark. The level of growth was +18.29 points (0.18%) throughout the day. Dow index grew much faster in the first half torogovoy session, but later collapsed. Stock trading in Europe ended Friday opposite changes in major indices, according to data exchanges.
On the streets of the Old World is hot, but Europe freezes. Greece, Italy and Spain have started to freeze wages in the public sector. Hungary freeze government spending. Not without reductions – cut jobs, social benefits, state and local budgets. The race on the road to strict financial savings kicked off when the markets began agitation against the background of the financial situation in several European countries, starting with Greece.
The euro remains a major challenge for Europe. France and Germany partially settled there was disagreement on the question of European economic policy – they finally agreed on the establishment of an economic government of the EU.
The French government approved a plan for privatization of state property, including historical monuments. Castles, manor houses, guest houses, barracks, farms, hunting lodges – all go under the hammer. Over 1,700 objects Nicolas Sarkozy’s government hopes to rescue multi-billion-euro, writes Times. This money is to cover the budget deficit.
Dow Jones Industrial Average may begin a sharp decline after the release of bad news from Spain. Dow index continues to strive for higher levels of 10.200 points, but the bears are making serious attempts to attack. Trading volumes are falling. Also disappointing customers news from Greece. Traders seemed unfazed by news that credit rating agency Moody’s lowered its rating on Greece’s debt to junk status. At the time Dow Jones Industrial is located at around 10,233.14. Index of blue chips was up to the level of 10,270, but the growth stopped. Overall growth for the Dow Jones today was +22.07 points (0.22%).
U.S. stock market is much stronger today. The level of support Dow Jones Industrial from bulls growing with each passing minute. Start trading on the U.S. stock market started with the growth of the NYSE and NASDAQ. Dow Jones Industrial rose 28.65 points (0.29%), and took a mark 9,968.63 points. Good statistics from U.S. supprots stock market greatly. American manufacturer of telecommunication and network equipment Ciena reported a net loss for the second quarter ending April 30 with a $ 90 million or 97 cents a share, compared with $ 503.2 million, or $ 5.53 per share a year earlier.
On Friday, May 14 at the European government bond market initiative, the second consecutive day, owned bulls. Excessive demand for protective assets increased against a background of speculation about the fact that Greece fails to pay their debts. That view, in particular, the head of Deutsche Bank Josef Ackermann, who declared that for the full repayment of its debts, Greece should make “unbelievable effort.” Statement by J. Ackerman served as the impetus for the beginning of active purchases of German and French bonds.
Dow Jones Industrial Average fell to the background of negative reports and the European collapse. Statement by Nicolas Sarkozy rocked all markets and indexes, Dow Jones Industrial Average was no exception. Next week promises to be even more unstable and violent. Analysts and experts of the stock market are not taken to make predictions, as the short-term and long-term.
French President Nicolas Sarkozy is not joking when promised market shock therapy in a series of measures aimed at curbing the sovereign debt crisis. Europe received Bazooka, which had always dreamed of former U.S. Treasury Secretary Paulson. Germany’s Chancellor Merkel and President of the European Central Bank’s Trichet responsible for its reliability. What are the implications for the liquidity and solvency? For the single currency and U.S. dollar?